France took a new step this week in the ongoing war with digital tech giants such as Google by reaffirming it will begin to levy taxes from them
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. It’s a move that will offend the U.S. whose companies are primarily affected, although the tax is not specifically aimed at American companies.... [+]France recently stated that it planned to charge U.S. giants such as Google, Apple, Facebook and Amazon a tax of 3% on French earnings. It will affect companies which have sales of more than €750 million and French revenue exceeding €25 million. It’s an attempt to leverage tax from companies which make a lot of money from French consumers but don’t pay much tax in the country. It’s a feeling that runs deep throughout France, and came up in many of the local Town Hall meetings that President Macron held during 2019.... [+]It has ignited a feud between France and the U.S.
The Tech Tax has ignited an economic spat between France and the U.S. which goes back 15 years to an original disagreement between the governments over Boeing and Airbus . The U.S. government had asked the World Trade Organisation to judge if Airbus had received unfair subsidies to operate around the world and the WTO recently ruled that it had. As a result the WTO said that the U.S. could add tariffs to compensate. In October 2019, they did, adding 25% on French goods being sold in the U.S.
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